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New Assessment Model for Ontario
In the new Ontario Budget, the government proposes to introduce three important changes to the assessment system to enhance the fairness and predictability of assessments for property owners while continuing to revalue properties on a regular basis and enabling municipalities to continue relying upon a stable source of revenue to fund important public services.
These proposed changes are:
- a four-year reassessment cycle;
- a mandatory phase-in of assessment increases;
- enhancements to the fairness and effectiveness of the assessment appeal system.
The implementation details of these proposed measures, as well as related programs and policies, will be the subject of consultation with municipalities, the Municipal Property Assessment Corporation (MPAC), and the Assessment Review Board (ARB).
Timing of Re-Assessments
The next reassessment is currently scheduled to take place for the 2009 taxation year, based on property values as of January 1, 2008. For the future, the government is proposing that subsequent reassessments would be conducted every four years, coupled with the implementation of a mandatory phase-in program.
The timing of the four-year reassessment cycle would operate as follows:
- Upon the next reassessment for the 2009 taxation year, property assessments will be updated using a valuation date of January 1, 2008. This valuation date would apply for 2009, 2010, 2011 and 2012.
- The cycle would continue accordingly every four years.
Mandatory Phase-In
Budget 2007 proposes to introduce a mandatory phase-in of future residential assessment increases over four years. The proposed four-year phase-in program would be implemented province-wide in 2009, following the next reassessment. This approach would complement the proposed introduction of a four-year assessment cycle. The phase-in program would apply to residential, farm and managed forest properties. The program would not apply to assessment decreases. This avoids the possibility of a homeowner being taxed on an assessment greater than the actual value of their property.
New Appeals Process
The government is proposing to introduce the following measures to improve the fairness and effectiveness of the assessment appeal system:
- convert the optional request for reconsideration program into the mandatory first stage of the assessment appeal process;
- change the deadline for filing ARB appeals so that it follows the completion of the reconsideration process;
- establish standard information disclosure requirements at both the reconsideration and appeal stages.
and
Establishing a two-stage appeal process with sequential filing deadlines and standardized information disclosure protocols should:
- simplify the appeal process as only one avenue of review would be pursued at any time ensure that the reconsideration process is used effectively as a venue for the exchange of information;
- reduce the number of appeals by resolving factual issues through the sharing of information at the reconsideration stage;
- and provide parties with access to consistent information within consistent timelines.
The Ontario government proposes to implement these measures to dovetail with the timing of the next reassessment for the 2009 taxation year.
March 29, 2007 in Real Estate Practices | Permalink
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